BG GROUP said it was in “excellent” shape ahead of a £35billion takeover by former rival Shell as it ramped up production and drove down costs in the face of sliding oil prices.

BG chief executive Helge Lund said the group was in 'excellent' shape ahead of the takeover

The FTSE 100 oil and gas group reported a surge in output in Australia and Brazil – key growth markets identified by Shell to justify the deal – beating its target to deliver a daily average of 704,000 barrels of oil per day last year, up 16 per cent on the previous year.

Volumes increased by 20 per cent in the fourth quarter.

Its liquefied natural gas business, which will help turn Shell into the world’s biggest LNG trader, delivered 63 per cent more volumes in 2015 as activity was stepped up at its Queensland Curtis facility in Australia.